Key Points
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Sterling Infrastructure is positioned at the forefront of the AI surge, benefitting from strong long-term growth prospects.
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AeroVironment is adapting to the evolving military landscape through its advanced drone technology.
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Vertiv’s liquid cooling products are essential for AI chips, leading to a strategic partnership with Nvidia.
Market downturns often generate unique opportunities for investing in high-quality growth companies with robust fundamentals. Investors eventually identify firms that consistently capture market share. When markets stabilize, funds generally flow towards companies that show steady expansion.
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While many stocks tend to benefit during market recoveries, growth stocks often yield even greater returns. As market sentiments shift from pessimism to optimism, these businesses tend to not just rebound but thrive, fueled by innovation and increasing demand.
When investor enthusiasm grows, standout companies quickly emerge. Below are three growth stocks likely to outperform in the long term.
1. Sterling Infrastructure
Sterling Infrastructure(NASDAQ: STRL) prides itself on strong margins and solid cash flow, constructing and servicing essential infrastructure for the economy, thereby placing it at the heart of the AI development wave.
Its E-Infrastructure Solutions division provides direct access to the AI sector, which Grandview Research estimates will maintain a 30.6% annual growth rate through 2033. Given Sterling’s market leader status, it may significantly outperform the S&P 500 in the long run. The firm reported an impressive 51% revenue growth year-over-year in Q4 2025, with its E-Infrastructure segment reporting 123% year-over-year growth and a 79% increase in backlog.
2. AeroVironment
AeroVironment(NASDAQ: AVAV) has experienced volatility but is strategically aligned with the shifting dynamics of military engagements, showcasing the importance of drones in modern warfare.
The ongoing conflicts, particularly with Iran, have underscored the necessity for drone technology, leading to significant new orders. Notably, the U.S. Navy has chosen AeroVironment to provide crucial support for naval operations, as well as a $186 million delivery order from the U.S. Army last February. The acquisition of next-generation defense tech firm BlueHalo has also contributed to a spike in revenue.
3. Vertiv
Vertiv(NYSE: VRT) specializes in liquid cooling solutions vital for AI chips, fostering a close, long-term partnership with Nvidia.
Nvidia’s chip sales boost the demand for Vertiv’s offerings, contributing to $10.2 billion in sales in 2025. The company anticipates $13.5 billion in sales for 2026—an impressive 28% year-over-year increase—backed by a $15 billion backlog. Despite facing competition, Vertiv remains focused on the AI infrastructure market, deriving 80% of its revenue from this sector, positioning itself for rapid market share gains compared to competitors like Schneider Electric.
